XYZ coding is for locating objects in the field.. your map looks like a subdivision with lot lines so I'm not sure how relevant XYZ coding would be .. however if you had a code for Lot Corner as "LC" then your coding would proceed around one five sided lot as follows..

ZLC ZLC ZLC YLC ZLC ZLC .LC

Z is for straight lines so the above coding would locate the first three corners and the Y code would locate a line radiating from the third corner, then the next two Z codes would locate the next two lot corners and the dot code " . " would close the lot on the first code
I think I have that correct...